apnic membership fees
DESCRIPTION
APNIC Membership Fees. APNIC 23 February 2007. Fairness 1. Fairness for normal APNIC members in all categories Effective annual cost per address Distribution of funding burden Barrier to entry for smallest members. Annual cost per IP address. Small. Medium. Large. V Large. X Large. - PowerPoint PPT PresentationTRANSCRIPT
1
APNIC Membership Fees
APNIC 23
February 2007
2
Fairness 1
• Fairness for normal APNIC members in all categories– Effective annual cost per address– Distribution of funding burden– Barrier to entry for smallest members
3
Annual cost per IP address
$0.0191$0.0012
$0.3052
$1.2207
$4.8828
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
/7 /8 /9 /10 /11 /12 /13 /14 /15 /16 /17 /18 /19 /20 /21 /22 /23 /24
X Large
V Large
Large
Medium
Small
4
Member categories
4.50
$200,000
733
0.20
5
$1,832,500
0%
20%
40%
60%
80%
100%
Members IPv4 Fees
Extra Large Very Large Large Medium Small
(all normal members, excluding NIRs)
5
Fairness 2
• APNIC members vs NIRs & NIR members – Distribution of funding burden– Per address fee problems– Consistency of fee structure– Predictability/stability of income
6
NIRs and NIR members
1385
7.53
$4,858,125
5.02
$190,000641 4.86
$462,720
6
0%
20%
40%
60%
80%
100%
Number IPv4 Fees
Members NIRs NIR members
*
* Budget for 2007
7
Per address fees
– Fee paid once only, for each NIR allocation• Regardless of allocation size• No ongoing annual fee per allocation• Large amounts, unpredictable for APNIC and NIRs
– Allocation contributes to NIR tier assessment and voting rights
Membership Tier # NIRs Per addr fee
Extra Large 4 0.02
Very Large 2 0.03
etc …
8
Fairness 3
• Members in least developed economies
• Non-members
• Historical address holders
• APNIC sustainability– To fund needed services to the region– To better tolerate currency fluctuations
9
Developing economies
777 $2,835,625
9.33
494 $1,916,250
3.19
120 $296,2500.03
0%
20%
40%
60%
80%
100%
Members Fee IPv4
DEV DC LDC
10
APNIC budget sustainability
0
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3
4
5
6
7
8
9
10
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Budget2007
Mil
lio
ns
Rev
enu
e/E
xpen
ses
(US
D)
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
AU
D/U
SD
Exc
han
ge
Rat
e
Revenue USD
Expenses USD
Exchange Rate
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Principles
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Fee structure principles
• DG Proposal v 2.3– Posted to wg-apnic-fees in Dec 2006– Example structure, not for formal vote
• “Parameterised” structure – settings are separate from the structure itself
• Parameters can be tuned to produce desired outcome
– Minimum fee level for minimum allocation– Number of bits per “tier”– NIR member discount– Parameters correspond roughly to principles behind
the fee structure
13
Principles
• Annual fee calculation should be based on IP address holdings– Reflect size of organisation (or its public
network infrastructure) and its capacity to pay– Reduce current disparity in per address costs
between small and large members– Remove artificial tiers
• Proposal– IPv4: double for each 2 bits (instead of 3)– IPv6: double for each 4 bits (instead of 3)– Replace tiers with continuous formula
14
Principles
• NIR members should have comparable fee structure to normal APNIC members– All Asia Pacific ISPs in a similar, comparable
position– Per address fee is unfair, unsustainable– Value and cost of NIR services should be
recognised
• Proposal– Same fee calculation applies, with discount in
recognition of services from NIR (e.g. 50%)– No per-address fee
15
Principles
• Support Internet development in LDCs– Using United Nations definitions
• http://www.un.org/special-rep/ohrlls/ldc/list.htm
• Proposal– 25% to 50% discount for LDCs– af,bd,bt,kh,tl,ki,la,mv,mm,np,ws,sb,tv,vu
16
Principles
• APNIC sustainability– APNIC revenues should be predictable– New NIRs should not undermine APNIC’s
ability to provide needed services– While APNIC is growing, surplus is required to
maintain capital reserve
• Proposal– Tune the fee structure to fund current budget,
with small surplus to support future growth– Examine fee indexing to major currencies etc
17
Proposal and Impacts
18
Proposal v 2.3
• Fee structure parameters
– Note: these are possible values and can be adjusted without changing the structure itself
Parameter Value Description
Fee start $400 Lowest fee level for address holder
Prefix start /24 Minimum prefix at lowest fee level
Prefix bits 2 Address bits between tiers
NIR discount 50% Discount for NIR members
LDC discount 50% Discount for LDC
19
Proposal v 2.3 – Impact
Annual fee Total fee Total fee Average
Prefix Count Current Current New New
6 1 $40,000.00 $40,000.00 $164,916.46 $164,916.46
8 1 $40,000.00 $40,000.00 $86,103.19 $86,103.19
9 3 $40,000.00 $120,000.00 $194,209.39 $64,736.46
10 1 $20,000.00 $20,000.00 $37,523.33 $37,523.33
11 8 $20,000.00 $160,000.00 $245,229.54 $30,653.69
12 15 $20,000.00 $300,000.00 $316,413.60 $21,094.24
13 15 $10,000.00 $150,000.00 $237,231.94 $15,815.46
14 31 $10,000.00 $310,000.00 $334,643.29 $10,794.94
15 37 $10,000.00 $370,000.00 $283,808.58 $7,670.50
16 71 $5,000.00 $355,000.00 $403,934.65 $5,689.22
17 62 $5,000.00 $310,000.00 $249,293.76 $4,020.87
18 105 $5,000.00 $525,000.00 $291,760.83 $2,778.67
19 231 $2,500.00 $577,500.00 $481,985.67 $2,086.52
20 249 $2,500.00 $622,500.00 $373,112.84 $1,498.45
21 253 $2,500.00 $632,500.00 $255,891.14 $1,011.43
22 69 $1,250.00 $86,250.00 $52,956.92 $767.49
23 64 $1,250.00 $80,000.00 $35,638.18 $556.85
24 86 $1,250.00 $107,500.00 $34,400.00 $400.00
None 83 $625.00 $51,875.00 $16,000.00 $192.77
1385 $4,858,125.00 $4,095,053.31
20
Proposal v 2.3 – Impact
$0.0191$0.0012
$0.3052
$1.2207
$4.8828
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
/7 /8 /9 /10 /11 /12 /13 /14 /15 /16 /17 /18 /19 /20 /21 /22 /23 /24
21
Proposal v 2.3 – Impact
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
/7 /8 /9 /10 /11 /12 /13 /14 /15 /16 /17 /18 /19 /20 /21 /22 /23 /24
22
Proposal v 2.3 – Impact
$0.0039
$0.0220
$0.00
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
$0.14
$0.16
$0.18
$0.20
/7 /8 /9 /10 /11 /12 /13 /14 /15 /16 /17 /18 /19 /20 /21 /22 /23 /24
23
Proposal v 2.3 – Impact
• Overall budget impact
Current New
Number IPv4 Fees Fees Increase
Members 1385 7.53 $4,858,125 $4,095,053 -16%
NIRs 6 5.02 $190,000 $451,825 138%
NIR members 641 4.86 $462,720* $1,440,491 211%
Total 2032 17.40 $5,510,845 $5,987,369 9%
* Budget 2007: per address fees from NIRs
24
Member categories
4.50
$200,000
733
0.20
5
$1,832,500
0%
20%
40%
60%
80%
100%
Members IPv4 Fees
Extra Large Very Large Large Medium Small
(all normal members, excluding NIRs)
25
Member categories
4.50
$200,000$445,229
733
0.20
$1,110,990
5
$1,832,500
0%
20%
40%
60%
80%
100%
Members IPv4 Fees New Fees
Extra Large Very Large Large Medium Small
26
NIRs and NIR members
1385
7.53
$4,858,125
5.02
$190,000641 4.86
$462,720
6
0%
20%
40%
60%
80%
100%
Number IPv4 Fees
Members NIRs NIR members
*
* Budget for 2007
27
NIRs and NIR members
1385
7.53
$4,858,125
$4,095,053
5.02
$190,000
$451,825
641 4.86
$462,720
6
$1,440,491
0%
20%
40%
60%
80%
100%
Number IPv4 Current New
Members NIRs NIR members
28
Discussion…